Barclays Bank Kenya recorded a 7% rise in after-tax profits to Ksh7.4 billion for the 2018 financial year, outpacing 2017 results. The growth followed a strategic focus on enhancing customer experience, with loan portfolios expanding 5% to Ksh177 billion and customer deposits surging 11.5%.
The bank’s non-interest income jumped 15% in 2018, fueled by digital lending platform Timiza and bancassurance operations. This diversification from interest-based revenue marked a key shift in its financial strategy.
Operational efficiency improved as Barclays reduced its branch network from 119 to 84, citing a 70% transaction volume outside physical locations. Management aims to elevate this figure to 90% through digital banking expansion, citing lower rental and staffing costs as contributing factors.
Looking ahead, the bank plans significant technology investments, including robotics, to solidify its position as Kenya’s most digitally oriented institution. Strategy director Moses Muthui highlighted this transition as central to long-term growth objectives.
Barclays is rebranding to ABSA Africa, with associated costs expected to rise ahead of the 2020 completion deadline. The South African parent company ABSA Group will fund the rebranding initiative, according to executives.
The board proposed a final dividend of KSh0.90 per share, with total payouts reaching KSh1.10—up 10% from 2017—pending shareholder approval.
